NEW DELHI: Indian shares are set to pull back on Friday from a 4-day day slide after euro zone policymakers moved to shore up struggling European banks and helped revive risk appetite across Asia.
However, the 30-share BSE index is unlikely to make up the 4 percent drop so far this week.
Financial stocks led by top lender State Bank of India will be in focus. State Bank has lost 7.7 percent in the past two trading sessions after Moody's cut its standalone rating, a move which hit other banking stocks as well.
On Wednesday, the bank tried to allay fears of any significant impact on its borrowing costs and said it expected to receive an injection of up to $2 billion from the Indian government this fiscal year.
Asian markets were trading higher after the European Central Bank announced aggressive liquidity measures and the European Union said it would present a plan for a coordinated recapitalisation of banks by member states.
The MSCI's broadest index of Asia Pacific shares outside Japan rallied 2.9 percent by 0242 GMT, while Japan's Nikkei rose 1.1 percent.
The Nifty India stock futures traded in Singapore were up 1.1 percent, pointing to a higher open for the Indian markets, which were closed on Thursday for a public holiday.
On Wednesday, the BSE index had slipped 0.5 percent to 15,792.41, its lowest close in nearly 20 months.
STOCKS TO WATCH
New Delhi Television after the firm and partner Kasturi & Sons decided to sell their respective stakes in Metro Nation Chennai Television Ltd for 150 million rupees.
Kilitch Drugs after Akorn Inc bought some of its assets for approximately $52 million.
Firstsource Solutions Ltd after it repurchased zero coupon convertible bonds due 2012 with face value of $21 million.
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